The purpose of this report is to analyze the marketing environment and segmentation possibilities for the product ?Bacardi Breezer'. This is done by applying the STEP analysis. Socio-culturally, the target audience for this beverage is women aged 18-44 and can be further subdivided as 18-24 and 25-44. The traditional target audiences are the 18-24 aged or young women who are relatively new to the flavor of alcoholic beverages and enjoy the taste of the beverage owing to its fruity flavor and relatively low alcohol content. The 25-44 age groups simply prefer the sweet fruity flavor of the beverage or have grown up drinking Bacardi Breezer.
[...] (Flavoured Alcoholic Beverages UK, 2005) Technological In 2003 Bacardi Breezer launched its first low calorie drink, ‘Diet Lemon'. (FABS in The United Kingdom, 2005) In May 2005 they came out with three existing new half sugar flavours, Zesty Lemon, Refreshing Raspberry, and Crisp Apple. The target audience for the new half sugar flavours are women and men, aged 24-35, looking for a low calorie alternative to beer, wine and already existing ready to drink beverages. (Bacardi Breezer Half Sugar, 2005) Bacardi Breezer did not just launch the healthier option but they were also first on the market with wine-based flavoured alcoholic beverages. [...]
[...] The ‘BOSS' ran for eight weeks across UK's National TV and was a ‘part of a massive million brand support package'. (Bacardi Breezer shows who's ‘Boss', 2005) Economic Bacardi Breezer is still a strong company although the flavoured alcoholic beverage market is declining. The entire market is worth 1.1 billion which of Bacardi Breezer UK is valued at £160 million. Since the launch in 1994 Bacardi Breezer has sold more than 49 million cases and continues to sell more than bottles per day. [...]
[...] (Flavoured Alcoholic Beverages UK, 2005) The gender aspect of Bacardi Breezer's segmentation is geared towards women. Women are targeted with the above mentioned sweet fruit flavour but also the colourful packaging is to attract women. The entire flavoured alcoholic beverage market, except Smirnoff Ice and WKD, has women as their target. (Flavoured Alcoholic Beverages UK, 2005) Psychographic segmentation The psychographic- or lifestyle segmentation for Bacardi Breezer has its base in leisure as it is an alcoholic beverage. Proof of this is to be seen in the number of advertisements made by Bacardi Breezer. [...]
[...] (The Portman Group, About us) Bacardi Breezer is a company that puts a lot of weight on its advertisement; Bacardi Breezer is therefore dependent on the guidelines given by the Committee of Advertising Practice (CAP). The Committee of Advertising Practice is ‘governed by codes of practice that are designed to make sure all advertising, wherever it appears, is honest and decent, as well as protect consumers'. (About CAP) 3.2 Segmentation strategies Demographic segmentation When looking at Bacardi Breezer's demographic segmentation it is clear to see two main aspects; age and gender. Bacardi Breezer's target group is aged 18-44. [...]
[...] Now Bacardi Breezer is on the third place after Smirnoff Ice and WKD. In 2002 the first decrease of sales was to be seen, Bacardi Breezer fell from 57.6 million litres sold to 49.9 million litres. In 2003 the decrease in sales was even more dramatic as it fell with 21%. Bacardi Breezer is not the only flavoured alcoholic beverage that has been experiencing this negative trend, brands like Metz, Archers Aqua and Red Star are also falling greatly. (FABS in The United Kingdom, 2005) Bacardi Breezer has been forced to raise their prices with approximately 12p above unit price due to government implementation of a tax hike in 2002. [...]
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